UK/US - Biotechnology firm Sygen is abandoning its legal action against Watson Wyatt over "inappropriate" advice on setting up the firm's pension scheme.
The US-based firm’s decision will come as great relief to the consultant which could have triggered similar claims in the UK.
Sygen set up its scheme after the firm split from previous owner Dalgety – a pet food company – in 1998.
The firm reached an agreement with trustees that, under the advice of Watson Wyatt, any surplus should be used to boost members’ benefits.
But since the scheme was set up, the surplus – which stood at £3.3m in March 2000 – dropped to just £1.1m under FRS17 by the end of 2002.
A spokesman for Sygen said: “At the time of the demerger of Dalgety, Watson Wyatt gave advice on the pension fund in the UK.
“All we can say is there has been an exchange of letters between the company and Watson Wyatt.”
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up
The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.